Burberry is a British luxury fashion house with international recognition
Listed on the London Stock Exchange, Burberry has a market capitalization of around EUR 9 billion at 28 February 2017.
Burberry is a British luxury brand name which designs, manufactures and distributes high-end clothes and accessories. The products are sold globally through a network of proprietary retail stores, online (at www.burberry.com), as well as through third-party retailers.
Burberry employs almost 11,000 employees and recorded a turnover of approximately GBP 2.5 billion for the 2015-2016 financial year.
Full year 2016/2017 results
- 2016/2017 was a year of transition during which Burberry took strategic actions to maintain the long-term success of its brand.
- Revenue stands at GBP 2.8 billion, a drop by 2% in organic terms but an increase of 10% in reported figures, impacted by foreign exchange rates.
- Adjusted operating profit dropped by 21% in organic terms to GBP 459 million, due to lower wholesale income, particularly in the US and Beauty, and reduced licensing income.
- Net cash as at 31 March 2017 was GBP 809 million, up by GBP 149 million compared to 31 March 2016 as a result of the decrease in investments and the positive impact of the variation in working capital requirements.
Outlook for 2017/2018
In the current challenging environment, Burberry continues to undertake strategic actions to protect the brand. The company also intends to pursue its cost reduction programme, the target being GBP 100 million in savings by March 2019. The group has also announced that the cash will be used to invest in growth and improve shareholder return. In April, Burberry sold the licence of its perfumes and cosmetics to the US company Coty.